DID IRAN JUST BLINK?

Today several Iranian websites published an English translation of a Friday sermon given by cleric Ayatollah Mohammad Emami-Kashani. Emani-Kashani insisted that Iran posed no threat and would respond to an invasion. The question is was it a call for negotiations or as it a threat? Some anlysist say that Iran Just blinked..Below is the transcript of the relevant part, what do you think? :

On July 11, 2008, several Iranian websites [1] published an English translation of a Friday sermon given by senior Iranian cleric Ayatollah Mohammad Emami-Kashani. In the sermon, Ayatollah Emani-Kashani insisted that Iran posed no threat and would respond to an invasion. Following is a summary of the sermon as posted in English on those websites. [2]To view the MEMRI TV page for Ayatollah Emami-Kashani, go to http://www.memritv.org/subject/en/382.htm. “…So, Iran is not a threat. That’s what regional and even Western states have said. They say Iran is ready for talks. Don’t raise hue and cry against Iran. Oh! the world’s liars! Oh the liar Israel! Oh the liar White House! If you wish to attack Iran, we will give you a response that will make you regretful…” “All know that [Iran’s war games this week] is a legal exercise, carried out within borders and territories of the Islamic Republic of Iran. Many in the world have condemned claims that the war games are illegal…. As to the claims that the war game is a threat, it should be said that the Islamic Republic of Iran has gained part of its power, and is in stage of obtaining some other part of its power in terms of military technique, industry, and knowledge. You (enemies) should admit the Islamic Republic of Iran’s power… this [refusal to do so] means that they (enemies) do admit it implicitly, while explicitly raising hues and cries against the Islamic Republic of Iran. Iran’s conduct is clear over the past 30 years. To where it has been a threat?…” He continued, “While we will never wage war on any country, we are fully prepared to defend our territorial integrity and deliver a devastating response to aggressors… The enemy must realize that we have excelled in the fields of science, industry, technology, and military.” He added that Iran’s missile capabilities would only be used to safeguard the country’s security and stability. He stated that “in the past three decades, the Islamic Republic has proven its high regard for international regulations as it has neither invaded any country nor threatened any state.” Elsewhere in his sermon, Ayatollah Kashani said Iran was ready to talk over its nuclear issue, and emphasized Iran’s inalienable right to peaceful nuclear technology and its commitment to the Nuclear Non-Proliferation Treaty, saying, “Iran and Europe are ready for talks now. Iran accepts the NPT overall. The peaceful nature of Iran’s nuclear program is fully clear.”